Generative AI in Customer Experience

GenAI in Customer Experience

GenAI in customer experience (CX)

GenAI in Customer Experience

A

Introduction

What if …

every message you received from a brand felt like was written by your best friend?

you never had to deal with the pains of “self service” again, but instead had a personal assistant in your pocket that had the answers to all your needs?

you could virtually experience, try on, or test any product before actually buying it?

A

Introduction

What if …

every message you received from a brand felt like was written by your best friend?

you never had to deal with the pains of “self service” again, but instead had a personal assistant in your pocket that had the answers to all your needs?

you could virtually experience, try on, or test any product before actually buying it?

B

Let's imagine a customer journey powered by GenAI

Customer journeys in travel provide a prime opportunity for GenAI to establish meaningful connections with customers. In our example, an airline takes the lead and develops a GenAI super-app. Other owners and ownership models alongside the customer journey are possible, too. ​

Say hi to "Luna" – a personal GenAI travel assistant

B

Let's imagine a customer journey powered by GenAI

Customer journeys in travel provide a prime opportunity for GenAI to establish meaningful connections with customers. In our example, an airline takes the lead and develops a GenAI super-app. Other owners and ownership models alongside the customer journey are possible, too. ​

Say hi to "Luna" – a personal GenAI travel assistant

B

Let`s imagine a near-future customer journey powered by Generative AI

Customer journeys in travel provide a prime opportunity for GenAI to establish meaningful connections to customers. In our example it`s an Airline that takes the lead and develops a Generative AI super-app. Other owners and owner-ship models alongside the customer journey are possible, too. ​

Say hi to “Luna” – your very personal GenAI travel assistant in your pocket​

B

Let`s imagine a near-future customer journey powered by Generative AI

Customer journeys in travel provide a prime opportunity for GenAI to establish meaningful connections to customers. In our example it`s an Airline that takes the lead and develops a Generative AI super-app. Other owners and owner-ship models alongside the customer journey are possible, too. ​

Say hi to “Luna” – your very personal GenAI travel assistant in your pocket​

Top 10 features for customers​

24/7 premium customer service​ through conversational interfaces with instant response time​

Immersive pretravel experience, deal discovery, and price comparison​

Hyperpersonalized itineraries and content tailored to every single customer​

Travel document collection,​ incl. prefilling forms and checking accuracy and validity​

Automatic adjustment of travel plans​ if needed, incl. proposed rescheduling ​

Integration and assisted communication with third parties,​ e.g., transport, hotels, insurance​

Instant problem solving​ – no need to browse endless FAQ and self-service communities

Advanced assistance and guidance through airports​ and POI of itinerary ​

Individual customer data and requirements provided to ground and cabin crew

Social media content on travel experience is automatically created and visually enhanced

Feature parity with best-in-class airline applications and traditional UI for basic features​

Value creation opportunities for airlines​

Direct

Upselling to current customers in existing channels​ (e.g., upgrades, easier rebooking, targeted pricing, in-flight services)

Commission from cross-selling additional travel services by third parties​ to existing customers ​ (e.g., hotels, ground transport, in-airport spending)

Subscriptions for selected premium concierge features​ of AI assistant (freemium model)

Indirect

Increase market share and generate lock-in effects due to compelling value proposition (GenAI assistant becomes USP)

Meet Betty – a seasoned traveler who often extends business trips with vacation experiences – and the hero of our travel journey

GenAI travel assistants can serve various customer segments – from business to casual, families, and solo travelers​

Characteristics

Business Betty

Freelance organizational coach; works mostly from home (London) with frequent client workshops

Trips often planned to unfamiliar cities with a few days lead time; 2-3 days on-site

Beach Betty

Knows she can take 2-3 days off when work is quiet and take the odd status call from the beach bar

Has acquaintances scattered around the globe from her studies and previous collaborations

Behavior

Business Betty

Is a seasoned traveler but is not an expert on the cities she is visiting

Does not have a lot of time to prepare all travel details but rather takes things as they come

Is not very price-sensitive (but does not like to waste money either)

Beach Betty

Feels bad if all she sees in a foreign city is the hotel and airport

Likes to use her loyalty points to reward herself with a few days at the beach and where the locals go

Is open to spending money on local delicacies and clothing that she can keep as a souvenir of the trip but is not a big shopper

Likes

Business Betty

Values seamless travel that leaves her time to focus on work but still to experience the destination by staying in boutique hotels and eating local food

Beach Betty

Would love to immerse herself in the cities she stays at but often does not have the time to research in advance

Cares deeply about the environmental and social sustainability of her travel

Fears

Business Betty

Is wary of connections, particularly at airports she's unfamiliar with, because she has missed flights due to delayed airport trains

Beach Betty

As she often travels solo, ensures she has a backup plan in case things go wrong

Take a look at the future of travel

Explore the future GenAI travel journey in detail

User prompts AI for content and tasks​

AI automatically generates content and performs tasks​

Step 1: Awareness Researching and planning trip​

Betty gets invited to a conference in Barcelona. She chats with her AI travel assistant, Luna, who has already prepared a door-to-door travel plan. It is hyperpersonalized using to Betty’s previous business trips and personal preferences , and Betty can easily extend the trip for a few days to explore the beach

Researching and planning trip​

Key GenAI-enhanced use cases​

Content and tasks provided based on user prompt

Up/cross-selling throughout the entire travel value chain

Suggestions for leisure activities​

Step 2: Consideration​ Deal discovery and booking​

Betty explores her upcoming travel virtually thanks to a rich media experience of all destinations and accommodations, incl. deals, real-time content from social media, and reviews from other travelers with a similar profile ​

She's thrilled that she can even see and book the in-flight food and seat options upfront​

Deal discovery and booking​

Key GenAI-enhanced use cases​

Immersive exploration of travel destination​

Personalized deal generation along the value chain​

Step 3: Purchase​​ Finalize travel preparations​

​ Meanwhile, Luna has collected all of Betty's required travel documents and has reviewed them for accuracy and validity. She even prefilled complicated immigration forms. All Betty needs to do now is read the summary and confirm the data is correct​

Finalize travel preparations​

Key GenAI-enhanced use cases​

Document collection, extraction, and filing​

Automated packing lists depending on weather, itinerary, trip purpose​

Customization of in-flight experience (dietary preferences, entertainment, seating)​

Advice on necessary prerequisites (visa, vaccinations, etc.)​

Step 4: Usage​​ ​ On the way to the airport​​

Luna monitors traffic data and adjusts the taxi pickup time before Betty wakes up and orders her favorite driver. While she is commuting, Luna suggests that Betty use the remaining 25 minutes to the airport to check if she is interested in duty-free offers that Luna can order and deliver to Betty's gate

On the way to the airport​​

Key GenAI-enhanced use cases​

Organization of ground transportation​

Line/wait time forecasting and guidance​

Personalized shopping offers​

Step 5: Usage​​ ​ At the airport​

After passing security, Luna warns Betty that the gate has changed last minute and gives Betty precise directions and walking time. Thanks to Luna, Betty arrives early and decides to visit the lounge. She asks Luna to check her in; to enter the lounge, Betty only needs to undergo a biometric scan of her face

​ At the airport​

Key GenAI-enhanced use cases​

Dynamic in-airport navigation (line length, gate changes, priority lanes)​

Lounge and amenity information​

Identification and admission support​

Personalized shopping and dining ideas (reflecting dietary preferences, deals, weather at destination, etc.)​

Step 6: Usage​​ On the plane​

Betty connects Luna with the onboard Wi-Fi and Luna immediately orders her a welcome drink. Luna assists the crew too and is integrated into the flight attendants' tablets. She has briefed the team about Betty's needs, empowering the crew to surprise Betty with little moments of delight without Betty having to ask in the first place​

On the plane​

Key GenAI-enhanced use cases​

Personalized crew-passenger interface​

Meal scheduling and selection​

Luggage tracking​

Step 7: Usage​​ Connecting flight and arriving at destination​

While Betty was in the air on her first flight, Luna took care of updating the travel plans accordingly since her connecting flight will be delayed. A note to the local taxi company and hotel went out via Luna, so they can save time and arrange everything for Betty​

Connecting flight and arriving at destination​

Key GenAI-enhanced use cases​

Dynamic rebooking and transfer guidance​

Coordination of ground transportation (brief driver)​

Guidance through immigration and baggage claim​

Automated hotel check-in​

Support with local habits and behaviors​

Step 8: Usage​​ Customer service request​

During her extended stay enjoying the beaches of Barcelona, Betty sprains her ankle and asks Luna for help. Since Luna is familiar with Betty’s travel insurance policies, she shows her the best available plans. She also informs her about next steps, the nearest hospital, and the documents she needs to take with her ​

Customer service request​

Key GenAI-enhanced use cases​

Proactive disruption management​

Assistance for any travel-related issues​

Communication with insurance and service providers​

Translation and cultural guidance ​

Step 9: Retention and advocacy​​ Back home

Back home, Luna follows up with Betty if she wants to share her experience with friends and family. Luna automatically generates a travel video with Betty's photos enhanced with creative AI images. A few weeks later, an exciting message arrives about the airline's loyalty program. Skydiving courses are on sale! Betty asks her new trusted friend Luna what she would do … ​

Back home

Key GenAI-enhanced use cases​

Automated debriefs and social content creation​

Customized loyalty and retention messages​

C

The impact of GenAI on CX

C

The impact of GenAI on CX

We are in the middle of the next big tidal wave of digital technology fundamentally changing how we experience the world

Yesterday

Traditional AI everywhere

AI is mainstream and powers the majority of everyday products and services

AI “Autopilots” predict and automate decisions and content display

Today

GenAI for business users

GenAI solutions empower marketeers to create unique content for every customer

The near future

GenAI for consumers

In 3-5 years, GenAI will be on everyone's phone, enabling customers to have their very own AI assistant

GenAI “Co-pilots” assist through bidirectional conversations and co-creation, empowering brands and people to make better decisions and generate hyperpersonalized content

This evolution is not a matter of technical feasibility but of reduction in AI computing costs, which are expected to decrease significantly with increasing demand and maturity of use cases

The cost to train GenAI models decreases much faster than the commonly observed hardware cost reductions, with estimates of up to 70% annualized cost decline

Drivers

Specialization and scaling in hardware (GPU/TPU) production

Ongoing standardization and cloud virtualization

Increased energy efficiency

Improvements on software side leading to more efficient code

Source: Our World in Data; ARK Invest; NVIDIA

This evolution is not a matter of technical feasibility but of reduction in AI computing costs, which are expected to decrease significantly with increasing demand and maturity of use cases

The cost to train GenAI models decreases much faster than the commonly observed hardware cost reductions, with estimates of up to 70% annualized cost decline

Drivers

  • Specialization and scaling in hardware (GPU/TPU) production
  • Ongoing standardization and cloud virtualization
  • Increased energy efficiency
  • Improvements on software side leading to more efficient code

Source: Our World in Data; ARK Invest; NVIDIA

Close

GenAI enables a multitude of use cases along the entire customer journey in many different industries (not exhaustive)

Awareness

1. Personalized content and creation at scale:
GenAI can analyze customer data to generate tailored content for advertisements, social media posts, and other awareness-building materials

 

2. Rapid product and vision prototyping:
CX and design teams can use GenAI to create and test realistic looking and feeling products and brands instantly in near-to-final fidelity

 

Consideration

3. Personalized recommendations at scale: GenAI can analyze customer preferences and behaviors to provide personalized product or service recommendations, guiding customers through their options

 

4. Real-time virtual assistance: AI-powered chatbots or virtual assistants can answer customer queries and provide information about products and services and offer instant support to customers as they finalize their decision

Purchase

5. Conversational purchase journey:
GenAI can guide a customer through the sign-up/purchase journey in a conversational Q&A format, increasing convenience and reducing dropout rates in the process

 

6. Security:
GenAI can enhance security measures during transactions, helping to prevent fraud and ensure safe payments; support document validation in KYC processes

 

Usage

7. Real-time conversational customer support:
GenAI-powered chatbots/voicebots can provide 24/7 customer support, addressing queries and concerns after the purchase

 

8. Personalized follow-ups/cross-selling:
GenAI can send personalized follow-up emails or messages based on the customer's purchase history and preferences

 

Retention

9. Predictive engagement in case of churn risk:
GenAI can predict when customers are most likely to engage and provide content at optimal times and keep engagement levels high through the entire CX journey

 

10. Personalized loyalty programs:
GenAI can tailor loyalty programs and rewards based on individual customer preferences and behaviors

 

Advocacy

11. Feedback and sentiment analysis:
GenAI can analyze customer feedback to identify trends and sentiment, helping improve products and services

 

12. Curated user-generated content:
GenAI can curate user-generated content to showcase positive experiences and encourage advocacy

 

 

GenAI's potential benefits span from productivity uplifts to an increase in sales and improved customer satisfaction

Increased productivity

Automated responses

Efficient self-service solutions

Data-driven insights

Uncovering inefficiencies through call or process analyses

Aspirational value already achieved

Hyperpersonalized decision-making support through interactive chatbot web experience with basic features

>80%

of customer interactions can be solved automatically

Increased sales

Personalized product recommendations

Interactive and engaging marketing content

Automated lead generation and nurturing processes

Analyzing customer data to identify upselling opportunities

Optimizing pricing strategies based on market trends and customer behavior

Aspirational value already achieved

AI-generated content and messaging within cart and check-out flows in e-commerce with basic features

3-5%

revenue increase in online shopping through reduced cart abandonment

Improved customer satisfaction

Personalized communications

Quick and accurate responses through optimized chatbots

Self-service solutions

Tailored product recommendations

Customer feedback analyses for continuous improvement

Consistent and reliable interactions

Aspirational value already achieved

GenAI-powered customer service co-pilot with today's basic functionality

20%

increase in customer satisfaction

GenAI has particularly high productivity impact potential in key functions relating to CX

GenAI can have a positive impact on all functions and industries

Independent of the industry, the potential impact of GenAI is particularly high in:

  • Marketing and sales, e.g., due of its potential to mimic human creativity enabling the creation of hyperpersonalized marketing content
  • Customer operations, e.g., due to its ability to profoundly improve self-service interactions and support agents in their daily work

These are two of the key functions connected to and responsible for a company's CX, showing that the potential impact of GenAI on CX across all industries is not to be underestimated

Note: Figures may not sum to 100% because of rounding.

1. Excludes implementation costs (e.g., training, licenses).

2. Includes aerospace, defense, and auto manufacturing.

3. Includes auto retail.

4. Excludes software engineering.
Source: McKinsey report:
The Economic Potential of Generative AI: The Next Productivity Frontier;​ internal experts
Databases: CIS/IHS Markit; Oxford Economics; McKinsey Sales Navigator; McKinsey Manufacturing and Supply Chain 360 assessment; McKinsey Corporate Business Functions

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New! Dive into the details of our latest comprehensive perspective on GenAI for CX

New! Dive into the details of our latest comprehensive perspective on GenAI for CX

D

Meet our experts and learn more

D

Meet our experts and learn more

Meet the team

Oliver Ehrlich

Partner
CX – Düsseldorf

Yaquta Mandviwala

Partner
CX – New York

Tey ​Bannerman

Partner
Design – London

Victoria ​Bough

Partner
Growth, Marketing & Sales – Denver

Max​ Gemeinhardt

Engagement Manager and
Director of Design

Berlin

Iwan​ Tanuwidjaja

Director of Data Science
Seattle

Jacqui
Cook

Senior Media Designer – Illustration

Janice
Ding

Senior Data Scientist

Jil​
Fellenberg

Senior Associate – CX

Philip​
Fitschen

Senior Associate – CX

Martina
Grönwall

Creative Lead – Visuals

Emily​
Jäger

Design Lead – Journey

Emily
Jones

Senior Data Scientist

Esther S
Lee

Design Lead – Prototyping

Annika
Meschnig

Engagement Manager – GM&S

Tobias
Mix

Creative Lead – Microsite

Alban
Nocaj

Senior Frontend Engineer

Clementine
Rettig

Senior Media Designer – Motion

Harald Fanderl

Senior Partner

Kevin Neher

Senior Partner

Robert Schiff

Senior Partner

Alfonso Pulido

Senior Partner

Ankit Bisht

Partner

Chris Smith

Partner

Josh Wolff

Partner

Keith Gilson

Dir. Practice Mgmt

15+

AI and digital experts

20+

Growth and CX experts

250+

Internal and external experts ​ providing primary and secondary data

D

Meet our experts and learn more

D

Meet our experts and learn more

Meet the team

Oliver Ehrlich

Partner
CX – Düsseldorf

Yaquta Mandviwala

Partner
CX – New York

Tey ​Bannerman

Partner
Design – London

Victoria ​Bough

Partner
Growth, Marketing & Sales – Denver

Max​ Gemeinhardt

Engagement Manager and
Director of Design

Berlin

Iwan​ Tanuwidjaja

Director of Data Science
Seattle

Team

Jacqui Cook

Senior Media Designer – Illustration

Janice Ding

Senior Data Scientist

Jil​ Fellenberg

Senior Associate – CX

Philip​ Fitschen

Senior Associate – CX

Martina Grönwall

Creative Lead – Visuals

Emily​ Jäger

Design Lead – Journey

Emily Jones

Senior Data Scientist

Esther S Lee

Design Lead – Prototyping

Annika Meschnig

Engagement Manager – GM&S

Tobias Mix

Creative Lead – Microsite

Alban Nocaj

Senior Frontend Engineer

Clementine Rettig

Senior Media Designer – Motion

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Sounding board

Harald Fanderl

Senior Partner

Kevin Neher

Senior Partner

Robert Schiff

Senior Partner

Alfonso Pulido

Senior Partner

Ankit Bisht

Partner

Chris Smith

Partner

Josh Wolff

Partner

Keith Gilson

Dir. Practice Mgmt

Close

15+

AI and digital experts

20+

Growth and CX experts

250+

Internal and external experts involved providing primary and secondary data

Please get in touch with the team if you would like to learn more or to request a personal live demo

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